S Srinivasan, a prominent figure in the cement industry, has officially stepped down as the CEO and Managing Director of India Cements. This decision follows the approval of a ₹7,000-crore deal by the Competition Commission of India (CCI), allowing UltraTech Cement to acquire a majority stake in the company.
India Cements announced this transition in a regulatory filing, stating that S Srinivasan and other key members of the promoter group, including Chitra Srinivasan and Rupa Gurunath, have resigned from their roles. UltraTech Cement, led by Kumar Mangalam Birla, now holds a 55.49% stake in India Cements, making it a subsidiary of UltraTech.
Key Highlights of the Deal
- Acquisition Approval: The CCI cleared UltraTech’s acquisition of 32.72% of India Cements’ equity shares.
- Open Offer: UltraTech plans to acquire an additional 26% stake through an open offer to shareholders.
- Leadership Changes: Alongside S Srinivasan, other independent directors have also stepped down, paving the way for new appointments under UltraTech’s leadership.
Impact on the Cement Industry
This acquisition marks a significant step in UltraTech’s expansion strategy, particularly in the southern market, where India Cements has a strong presence. The move also intensifies competition between industry giants like the Aditya Birla Group and the Adani Group.
S Srinivasan’s Legacy
Under S Srinivasan’s leadership, India Cements has been a key player in the Indian cement market, contributing significantly to infrastructure development. His resignation marks the end of an era for the company and the beginning of a new chapter under UltraTech’s guidance.
As UltraTech Cement takes charge, industry experts anticipate further consolidation and growth in the Indian cement sector.
